TESCO PLC
IKEA
Overall, IKEA delivered an 11.9% growth in sales and turnover of
A more accessible IKEA
The retailer's strong performance reflects continued investment in a more accessible IKEA through the introduction of new offerings including Plan & Order Points (smaller stores dedicated to kitchen, bedroom, and living room planning) in the North West of
'In our 80th year, we can be proud of our performance. FY23 was a year in which we improved our customer experience, grew our market share and continued making meaningful investments in our business and people.'
Peter Jelkeby
CEO and Chief Sustainability Officer,
Investments in logistical operations were also essential to IKEA's performance in FY23. As well as enabling faster and more sustainable deliveries to meet the growing demands of IKEA's online and offline business, the opening of a multi-million-pound customer distribution centre (CDC) in
At the same time, IKEA has been investing in cost transformation projects focused largely on improved energy and waste management. Despite inflationary pressures in FY23, IKEA decreased its operating cost ratio to 27.8% (FY22: 29.1%), positively impacting operating profitability, which grew to 4.5% of total turnover (FY22: 2.3%).
Rows of forklift trucks parked inside IKEA's new customer distribution centre in
Inside IKEA's new customer distribution centre in
'Having overcome challenges posed by Brexit and COVID, we have since focused on a creating a more efficient organisation and improving our profitability, which gives us the financial strength to continue investing for generations to come. Despite a difficult economic climate, our focus remains on new locations, new store formats, and in new services.'
Peter Jelkeby
CEO and Chief Sustainability Officer,
Key FY23 Highlights
Better Business
Despite challenging market conditions, IKEA continued to make important strategic investments in its journey to become more affordable, accessible, and sustainable. The retailer's strong performance in FY23 gives IKEA the financial strength to continue investing in its business and meeting the needs of both people and planet in the years to come:
11.9% growth in sales
4.5% operating profit (of total turnover)
1 million new visits to IKEA
19% growth in online sales (38.5% share of total sales in FY23)
24% growth in remote sales
48% increase in click & collect purchases
New city stores announced for
National roll-out of over 70 additional mobile pick-up points in partnership with
A selection of home furnishing pieces from IKEA's 80th anniversary Nytillverkad collection, including armchairs and cushions
IKEA's 80th anniversary Nytillverkad collection
As the cost-of-living crisis continued to impact customers, IKEA saw a clear pattern emerge. In response to economic strain, customers sought durable solutions that enhanced the dual role of the home as a sanctuary and a space for work and leisure activities. The importance of storage across the home was reflected in sales of IKEA's highly adaptable PAX and KOMPLEMENT wardrobe systems, which increased 49% and 39% respectively, with the
IKEA opened three new Plan & Order Points launched across the North West in Aintree,
IKEA announced its first patent pledge on 'Anchor and Unlock'- an anti-tip-over safety innovation launched across the VIHALS range to help make life at home safer for the many
'Nytillverkad' collection launched to celebrate 80 years of IKEA; classic designs reimagined in fresh colours and new materials
Better Lives
At the heart of IKEA's business is a vision to create a better everyday life for the many people. This means contributing to the financial, mental and physical wellbeing of all co-workers, as well as the wider communities in which the company operates:
Partnership established with homelessness charity, Shelter, advocating for the development of 90,000 social houses per year by 2030
93 work placements provided to refugees through IKEA UPPNA Skills for Employment programme
Better Planet
IKEA continued to make important progress towards its ambitious sustainability goals in FY23, supporting the retailer's commitment to become a climate positive business by 2030. This means reducing more greenhouse gas emissions than the IKEA value chain emits, while growing the business:
100% renewable electricity use in stores and distribution centres
13,960,263 kWh per year generated by
New customer distribution centre launched in
50% reduction in food waste since 2017
31.9% (vs. 29% in FY22) of total sales represented by People & Planet Positive range - products designed to help customers save money and create a more sustainable life at home
52,380 pieces of furniture traded and given a second life through IKEA BuyBack & Re-sell scheme (up 187% vs FY22)
500,000+ free spare parts provided to help customers prolong the life of their products
New mattress removal & recycling scheme launched
A more affordable IKEA
'As we look to the future, we are proud to have kickstarted 2024 by lowering a significant volume of prices, with more to come; underscoring our commitment to being on the side of those with the lowest means. Guided by the foundations set out 80 years ago, we'll continue building a business that contributes to better homes for our customers, better lives for co-workers and communities, and a better planet for all.'
Peter Jelkeby
CEO and Chief Sustainability Officer,
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